Peru Granted Rio Exceptional Mining Right At Border

Peru has granted mining giant Rio Tinto the mining right in the 18th block in southern part of Tacna, within 30 miles from border of Chile and Bolivia, said Peru last week. Ministry of Mines said Peru prohibits foreign companies mining nearby its border, while breaking rules for Rio under the name of ‘public demands’to accelerate the development in the borders. Ministry of Mines stated,’rights granting is not based on private benefits, but on contribution for social welfare. ’however the ministry didn’t tell the compensation Rio paid for the grant. Rio commenced exploiting and drilling in La Granja, the largest copper project in northern part of Peru. The company, bought the controlling stake of the mine after BHP Billiton pulling back in January,2006, said it mapped out to complete the pre-feasibility study by 2010. Peru is the second largest copper producer after Chile.